MANILA— The 10-member state Association of Southeast Asian Nations (ASEAN) is seen to continue attracting foreign direct investments (FDIs), according to the ASEAN Investment Report (AIR) 2017 of the United Nations Conference on Trade and Development (UNCTAD).
The UNCTAD reported that despite the 20-percent decline in FDI flows in ASEAN in 2016 at USD96.7 billion, the region remains competitive to lure investments.
It explained that the decrease in FDI inflows in 2016 reflected the global economic situation and the divestment of Mauritius of USD13.6 billion in one member state.
“Despite the atypical 2016 FDI performance, the region continued to attract a high level of FDI, reflecting ASEAN’s resilience and the region’s attractiveness and competitiveness in attracting investments,” the report said
But the report noted that intra-ASEAN investment and FDI from its dialogue partners rose last year.
Activities of multinational enterprises (MNEs) were vibrant from 2016 to 2017. Many are opening plants, expanding their operations in the region in a wide range of industries, including research and development (R&D) as well as regional headquarters operations.
Last year, a number of Fortune Global 500 firms invested in R&D in ASEAN.
These include Switzerland’s Nestle; Germany’s Osram Opto Semiconductor; United States’ Apple; South Korea’s Samsung Electronics; and Japan’s Panasonic, Honda, and Nissan.
“The outlook for a higher FDI in 2017 is promising given the active corporate activities in the region,” the AIR 2017 read.
“The region will continue to attract strong FDI flows with greater regional value chain and supply chain activities in years ahead,” it added.